Editor's Note: This story originally appeared on Construction Coverage.
Due to both the drive up in home prices that began in 2020 and rising interest rates, mortgage payments have increased rapidly over the last year. The monthly mortgage payment for a median-priced home is now 66% higher than a year ago.
According to data from Zillow, the national median home price increased from $318,432 to $357,544 from late November 2021 to late November 2022. At the same time, the average 30-year fixed mortgage rate went from 3.11% to 6.49%.
Both mortgage interest rates and home prices vary on a geographic basis.
Additionally, some parts of the country have seen smaller declines in home prices than others. As a result, homebuyers in certain areas have been much more impacted by rising interest rates.
To determine the locations where homebuyers are most impacted by rising interest rates, researchers at Construction Coverage analyzed the latest data from Zillow and Freddie Mac.
The researchers ranked metros according to the percentage change in the monthly mortgage payment for a median-priced home from 2021 to 2022.
Researchers also calculated the total change in mortgage payment from 2021 to 2022, the mortgage payment for a median-priced home, and median home price. Find details on our methodology at the end.
Here are the U.S. metropolitan areas where homebuyers are most impacted by rising interest rates.
15. Houston-The Woodlands-Sugar Land, TX
- Percentage change in mortgage payment (YoY): +67.8%
- Total change in mortgage payment (YoY): +$641
- Mortgage payment for median-priced home (current): $1,586
- Mortgage payment for median-priced home (1 year ago): $945
- Median home price (current): $313,962
14. Oklahoma City, OK
- Percentage change in mortgage payment (YoY): +68.0%
- Total change in mortgage payment (YoY): +$458
- Mortgage payment for median-priced home (current): $1,131
- Mortgage payment for median-priced home (1 year ago): $673
- Median home price (current): $223,988
13. San Antonio-New Braunfels, TX
- Percentage change in mortgage payment (YoY): +68.3%
- Total change in mortgage payment (YoY): +$698
- Mortgage payment for median-priced home (current): $1,721
- Mortgage payment for median-priced home (1 year ago): $1,023
- Median home price (current): $340,673
12. Memphis, TN-MS-AR
- Percentage change in mortgage payment (YoY): +68.4%
- Total change in mortgage payment (YoY): +$487
- Mortgage payment for median-priced home (current): $1,199
- Mortgage payment for median-priced home (1 year ago): $712
- Median home price (current): $237,348
11. Indianapolis-Carmel-Anderson, IN
- Percentage change in mortgage payment (YoY): +69.1%
- Total change in mortgage payment (YoY): +$567
- Mortgage payment for median-priced home (current): $1,389
- Mortgage payment for median-priced home (1 year ago): $821
- Median home price (current): $274,955
10. Raleigh-Cary, NC
- Percentage change in mortgage payment (YoY): +69.5%
- Total change in mortgage payment (YoY): +$920
- Mortgage payment for median-priced home (current): $2,245
- Mortgage payment for median-priced home (1 year ago): $1,325
- Median home price (current): $444,389
9. Tulsa, OK
- Percentage change in mortgage payment (YoY): +70.4%
- Total change in mortgage payment (YoY): +$458
- Mortgage payment for median-priced home (current): $1,109
- Mortgage payment for median-priced home (1 year ago): $651
- Median home price (current): $219,541
8. Atlanta-Sandy Springs-Alpharetta, GA
- Percentage change in mortgage payment (YoY): +70.9%
- Total change in mortgage payment (YoY): +$799
- Mortgage payment for median-priced home (current): $1,926
- Mortgage payment for median-priced home (1 year ago): $1,127
- Median home price (current): $381,244
7. Dallas-Fort Worth-Arlington, TX
- Percentage change in mortgage payment (YoY): +71.7%
- Total change in mortgage payment (YoY): +$819
- Mortgage payment for median-priced home (current): $1,962
- Mortgage payment for median-priced home (1 year ago): $1,142
- Median home price (current): $388,388
6. Charlotte-Concord-Gastonia, NC-SC
- Percentage change in mortgage payment (YoY): +73.5%
- Total change in mortgage payment (YoY): +$829
- Mortgage payment for median-priced home (current): $1,956
- Mortgage payment for median-priced home (1 year ago): $1,127
- Median home price (current): $387,184
5. Nashville-Davidson–Murfreesboro–Franklin, TN
- Percentage change in mortgage payment (YoY): +75.2%
- Total change in mortgage payment (YoY): +$984
- Mortgage payment for median-priced home (current): $2,294
- Mortgage payment for median-priced home (1 year ago): $1,309
- Median home price (current): $454,084
4. Jacksonville, FL
- Percentage change in mortgage payment (YoY): +78.0%
- Total change in mortgage payment (YoY): +$832
- Mortgage payment for median-priced home (current): $1,898
- Mortgage payment for median-priced home (1 year ago): $1,066
- Median home price (current): $375,692
3. Orlando-Kissimmee-Sanford, FL
- Percentage change in mortgage payment (YoY): +79.4%
- Total change in mortgage payment (YoY): +$894
- Mortgage payment for median-priced home (current): $2,020
- Mortgage payment for median-priced home (1 year ago): $1,126
- Median home price (current): $399,902
2. Tampa-St. Petersburg-Clearwater, FL
- Percentage change in mortgage payment (YoY): +79.9%
- Total change in mortgage payment (YoY): +$876
- Mortgage payment for median-priced home (current): $1,973
- Mortgage payment for median-priced home (1 year ago): $1,097
- Median home price (current): $390,617
1. Miami-Fort Lauderdale-Pompano Beach, FL
- Percentage change in mortgage payment (YoY): +83.9%
- Total change in mortgage payment (YoY): +$1,101
- Mortgage payment for median-priced home (current): $2,414
- Mortgage payment for median-priced home (1 year ago): $1,312
- Median home price (current): $477,823
Methodology
To determine the locations where homebuyers are most impacted by rising interest rates, researchers at Construction Coverage analyzed the latest data from Zillow’sZillow Home Value Index (ZHVI), a measure of typical home value, and Freddie Mac.
The researchers ranked metros according to the percentage change in the monthly mortgage payment for a median-priced home from 2021 to 2022. In the event of a tie, the metro with the largest total change in mortgage payment was ranked higher.
Researchers also calculated the mortgage payment for a median-priced home, and median home price. Median home price was calculated from Zillow’s ZHVI, and the monthly mortgage payment for a median-priced home was calculated by assuming a 30-year fixed-rate mortgage with a 20% down payment.
To improve relevance, only metropolitan areas with at least 100,000 people were included in the analysis.
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